In Dallas, Wal-Mart Gets Squeezed Between Low Price Alternative Formats And High Service Conventional Stores

In this the 22nd iteration of the Produce Business Wal-Mart Pricing Report, we return to Dallas, TX, which we last visited back in October of 2003, and we find that much has changed and much has not.

Back in 2003, Wal-Mart was the undisputed King of the price point. Indeed, the only retailer in town that beat the Wal-Mart Supercenter in offering low produce prices was its own sister banner, Wal-Mart’s Neighborhood Market concept. That was really a bit of randomness thrown in the mix, however, as Wal-Mart’s policy at that point in time—since abandoned — was that Supercenters and Neighborhood Markets should price identically.

Wal-Mart Supercenter vs 6 Chains
Price Comparison — Dallas, TX

October 2011 – Prices Available To The General Public

STORE NAME

WALMART

ALBERTSONS

CENTRAL MARKET

KROGER

Produce Item

How
Priced

Regular
Price*

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Apples – Granny Smith

Lb

1.47

1.99

35.37%

1.59

8.16%

1.69

14.97%

Apples – Red Delicious

Lb

1.37

1.99

45.26%

1.49

8.76%

1.69

23.36%

Avocados

Each

0.98

1.39

41.84%

2.49

154.08%

0.99

1.02%

Bananas – Yellow

Lb

0.52

0.54

3.85%

0.54

3.85%

0.49

-5.77%

Beans – Green

Lb

1.44

1.69

17.36%

1.79

24.31%

1.00

-30.56%

Beets

Each

1.89

2.50

32.28%

1.99

5.29%

2.29

21.16%

Broccoli Crowns

Lb

1.84

1.99

8.15%

1.99

8.15%

2.04

10.87%

Brussel Sprouts

Lb

2.67

3.99

49.44%

3.49

30.71%

2.99

11.99%

Cabbage – Green

Lb

0.54

0.69

27.78%

0.69

27.78%

0.57

5.56%

Cabbage – Red

Lb

0.77

0.89

5.58%

0.79

2.60%

0.99

28.57%

Cantloupe – Whole

Each

1.58

1.00

-36.71%

2.29

44.94%

2.50

58.23%

Carrots – Organic

Lb

0.82

2.69

228.05%

1.29

57.32%

2.19

167.07%

Cauliflower

Each

2.78

2.99

7.55%

2.99

7.55%

2.99

7.55%

Celery

Each

1.38

1.49

7.97%

1.99

44.20%

1.47

6.52%

Cherries

Lb

2.98

3.99

33.89%

4.99

67.45%

3.99

33.89%

Coleslaw – 1# Bag

Bag

1.58

2.29

44.94%

1.79

13.29%

1.69

6.96%

Corn – Yellow

Each

0.33

0.50

51.52%

0.59

78.79%

0.40

21.21%

Cucumbers – Regular

Each

0.68

0.69

1.47%

0.89

30.88%

0.78

14.71%

Eggplant

Lb

1.78

1.99

11.80%

1.79

0.56%

2.49

39.89%

Grapefruit – Red

Each

0.64

0.99

54.69%

0.65

1.56%

0.69

7.81%

Grapes – Green Seedless

Lb

1.98

1.79

-9.60%

2.49

25.76%

2.16

9.09%

Grapes – Red Seedless

Lb

1.98

1.99

0.51%

2.49

25.76%

2.16

9.09%

Green Onions

Bunch

1.12

0.89

-20.54%

0.69

-38.39%

0.62

-44.64%

Honeydew – Whole

Each

2.50

3.99

59.60%

3.99

59.60%

3.49

39.60%

Lettuce – Green Leaf

Each

1.88

1.79

-4.79%

1.89

0.53%

1.79

-4.79%

Lettuce – Iceberg Bulk

Each

1.14

1.29

13.16%

1.49

30.70%

1.28

12.28%

Lettuce – Romaine Bulk

Each

1.88

1.79

-4.79%

1.89

0.53%

1.99

5.85%

Limes

Each

0.18

0.25

38.89%

0.17

-5.56%

0.69

283.33%

Mangos

Each

0.64

0.99

54.69%

0.99

54.69%

1.79

179.69%

Mushrooms – White Package

16oz

2.98

4.18

40.27%

3.49

17.11%

4.14

38.93%

Nectarines

Lb

1.25

0.99

-20.80%

1.99

59.20%

1.99

59.20%

Onions – Red

Lb

1.48

1.00

-32.43%

1.59

7.43%

1.89

27.70%

Peaches – California

Lb

1.25

1.79

43.20%

1.99

59.20%

1.49

19.20%

Pears – Bartlett

Lb

1.37

1.49

8.76%

1.29

-5.84%

1.00

-27.01%

Peas – Snap

8 oz

2.63

3.69

40.30%

1.68

-36.12%

2.99

13.69%

Peas – Snow

8 oz

2.63

4.92

87.07%

1.68

-36.12%

4.00

52.09%

Peppers – Green Bell

Each

0.78

0.99

26.92%

1.29

65.38%

0.86

10.26%

Peppers – Jalapeno

Lb

1.12

1.49

33.04%

0.99

-11.61%

0.88

-21.43%

Peppers – Serrano

Lb

1.98

3.99

101.52%

1.89

-4.55%

1.42

-28.28%

Pineapple

Each

3.48

4.99

43.39%

4.49

29.02%

3.99

14.66%

Plums

Lb

1.25

1.00

-20.00%

1.69

35.20%

1.99

59.20%

Potatoes – Red Bulk

Lb

0.88

1.29

46.59%

1.99

126.14%

1.29

46.59%

Potatoes – Russet Bulk

Lb

0.98

1.29

31.63%

1.29

31.63%

0.99

1.02%

Radishes

Bunch

1.48

1.00

-32.43%

0.99

-33.11%

0.99

-33.11%

Salad – Caesar

12.8 oz

3.78

4.22

11.64%

5.76

52.38%

6.40

69.31%

Salad – Garden

12 oz

2.78

2.04

-26.62%

2.52

-9.35%

3.29

18.35%

Salad – Spring

5 oz

2.98

3.49

17.11%

2.99

0.34%

3.29

10.40%

Salad – Organic

5 oz

2.98

3.99

33.89%

2.20

-26.17%

3.25

9.06%

Squash – Zucchini

Lb

1.28

1.89

47.66%

1.69

32.03%

1.38

7.81%

Strawerries – 1# Pkg

Pkg

1.88

1.99

5.85%

2.49

32.45%

2.50

32.98%

Tomatoes – On The Vine

Lb

1.84

1.69

-8.15%

1.49

-19.02%

1.98

7.61%

Tomatoes – Plum/Roma

Lb

1.38

1.00

-27.54%

1.69

22.46%

1.45

5.07%

Watermelon – Seedless

Each

3.50

5.99

71.14%

4.99

42.57%

4.98

42.29%

MARKET BASKET

89.28

111.45

24.83%

106.35

19.12%

108.33

21.34%

Red is adjusted price

STORE NAME

WALMART

SPROUTS

SUPER TARGET

WALMART

Produce Item

How
Priced

Regular
Price*

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Apples – Granny Smith

Lb

1.47

1.39

-5.44%

1.62

10.20%

1.69

14.97%

Apples – Red Delicious

Lb

1.37

1.49

8.76%

1.62

18.25%

1.99

45.26%

Avocados

Each

0.98

1.50

53.06%

0.99

1.02%

1.99

103.06%

Bananas – Yellow

Lb

0.52

0.49

-5.77%

0.52

0.00%

0.59

13.46%

Beans – Green

Lb

1.44

0.99

-31.25%

1.99

38.19%

1.99

38.19%

Beets

Each

1.89

2.89

52.91%

1.99

5.29%

2.49

31.75%

Broccoli Crowns

Lb

1.84

1.49

-19.02%

1.69

-8.15%

1.99

8.15%

Brussel Sprouts

Lb

2.67

2.89

8.24%

2.99

11.99%

2.99

11.99%

Cabbage – Green

Lb

0.54

0.49

-9.26%

1.57

190.74%

0.89

64.81%

Cabbage – Red

Lb

0.77

0.59

-23.38%

1.99

158.44%

0.99

28.57%

Cantloupe – Whole

Each

1.58

1.50

-5.06%

2.39

51.27%

2.99

89.24%

Carrots – Organic

Lb

0.82

1.29

57.32%

1.09

32.93%

2.29

179.27%

Cauliflower

Each

2.78

1.50

-46.04%

1.99

-28.42%

2.99

7.55%

Celery

Each

1.38

0.99

-28.26%

1.29

-6.52%

1.99

44.20%

Cherries

Lb

2.98

2.49

-16.44%

3.49

17.11%

5.99

101.01%

Coleslaw – 1# Bag

Bag

1.58

1.49

-5.70%

1.69

6.96%

2.29

44.94%

Corn – Yellow

Each

0.33

0.50

51.52%

0.34

3.03%

0.59

78.79%

Cucumbers – Regular

Each

0.68

0.77

13.24%

0.59

-13.24%

1.29

89.71%

Eggplant

Lb

1.78

1.49

-16.29%

1.99

11.80%

2.99

67.98%

Grapefruit – Red

Each

0.64

0.79

23.44%

0.94

46.88%

1.29

101.56%

Grapes – Green Seedless

Lb

1.98

1.50

-24.24%

1.89

-4.55%

2.99

51.01%

Grapes – Red Seedless

Lb

1.98

1.50

-24.24%

2.29

15.66%

2.99

51.01%

Green Onions

Bunch

1.12

0.49

-56.25%

1.19

6.25%

0.89

-20.54%

Honeydew – Whole

Each

2.50

2.99

19.60%

2.39

-4.40%

4.99

99.60%

Lettuce – Green Leaf

Each

1.88

0.99

-47.34%

2.19

16.49%

1.99

5.85%

Lettuce – Iceberg Bulk

Each

1.14

1.29

13.16%

1.19

4.39%

1.68

47.37%

Lettuce – Romaine Bulk

Each

1.88

1.29

-31.38%

1.79

-4.79%

1.99

5.85%

Limes

Each

0.18

0.50

177.78%

0.19

5.56%

0.33

83.33%

Mangos

Each

0.64

0.79

23.44%

0.44

-31.25%

1.99

210.94%

Mushrooms – White Package

16 oz

2.98

3.36

12.75%

3.58

20.13%

4.58

53.69%

Nectarines

Lb

1.25

0.69

-44.80%

1.27

1.60%

2.99

139.20%

Onions – Red

Lb

1.48

0.89

-39.86%

0.99

-33.11%

1.99

34.46%

Peaches – California

Lb

1.25

1.29

3.20%

1.04

-16.80%

2.99

139.20%

Pears – Bartlett

Lb

1.37

0.88

-35.77%

1.47

7.30%

1.99

45.26%

Peas – Snap

8 oz

2.63

2.50

-4.94%

2.99

13.69%

3.49

32.70%

Peas – Snow

8 oz

2.63

2.50

-4.94%

2.00

-23.95%

4.65

76.81%

Peppers – Green Bell

Each

0.78

0.49

-37.18%

0.79

1.28%

1.29

65.38%

Peppers – Jalapeno

Lb

1.12

1.49

33.04%

0.99

-11.61%

1.49

33.04%

Peppers – Serrano

Lb

1.98

1.49

-24.75%

1.99

0.51%

2.99

51.01%

Pineapple

Each

3.48

2.00

-42.53%

3.49

0.29%

4.99

43.39%

Plums

Lb

1.25

0.99

-20.80%

1.27

1.60%

2.49

99.20%

Potatoes – Red Bulk

Lb

0.88

0.99

12.50%

0.89

1.14%

1.69

92.05%

Potatoes – Russet Bulk

Lb

0.98

0.99

1.02%

0.99

1.02%

1.19

21.43%

Radishes

Bunch

1.48

0.49

-66.89%

0.99

-33.11%

0.99

-33.11%

Salad – Caesar

12.8 oz

3.78

6.40

69.31%

4.48

18.52%

5.11

35.19%

Salad – Garden

12 oz

2.78

2.99

7.55%

2.99

7.55%

3.16

13.67%

Salad – Spring

5 oz

2.98

2.99

0.34%

2.99

0.34%

3.79

27.18%

Salad – Organic

5 oz

2.98

3.49

17.11%

3.99

33.89%

3.99

33.89%

Squash – Zucchini

Lb

1.28

1.49

16.41%

1.99

55.47%

1.69

32.03%

Strawerries – 1# Pkg

Pkg

1.88

2.50

32.98%

2.09

11.17%

3.49

85.64%

Tomatoes – On The Vine

Lb

1.84

1.49

-19.02%

2.99

62.50%

2.69

46.20%

Tomatoes – Plum/Roma

Lb

1.38

0.69

-50.00%

1.24

-10.14%

1.99

44.20%

Watermelon – Seedless

Each

3.50

1.88

-46.29%

4.49

28.29%

6.99

99.71%

MARKET BASKET

89.28

83.32

-6.68%

98.32

10.13%

134.84

51.03%

Red is adjusted price

So when Wal-Mart’s Neighborhood Market took the low price crown on an equally sized market basket of produce, it was probably due to either a pricing error or an in-store markdown.

Although Brookshire’s came close in 2003, being only 7 percentage points over the Wal-Mart Supercenter in pricing, Kroger, Albertsons and Tom Thumb all took a licking.

In general, whatever problems Wal-Mart may have had back in 2003, it really was still the low-price leader, and if consumers were going to go elsewhere, it would certainly cost them money when it came to buying fresh produce.

Fast Forward to 2011

In many ways, the picture hasn’t changed in 2011… although in one big way it has. Analyzing a common market basket of produce gathered from Wal-Mart and six conventional stores, plus an Aldi store in mid-August, the conventional supermarkets remain at a significantly higher price point. Albertsons, which back in 2003 came in at 22.68 percent over Wal-Mart Supercenter pricing, now eight years later finds itself at 24.83 percent over Wal-Mart Supercenter pricing.

Kroger, which back in 2003 came in at 19.05 percent over Wal-Mart Supercenter pricing came in at 21.34 percent overWal-Mart Supercenter pricing. Safeway’s Tom Thumb banner, which is an upscale alternative in the market, obviously didn’t mind its performance at 27 percent over Wal-Mart back in 2003 to be problematic, as its produce pricing in 2011 came in an astounding 51.03 percent over Wal-Mart. This is the one of the greatest differentials we have seen in our rolling study – though Tom Thumb still comes in second place to Jensen’s Foods out in Palm Springs, CA, which tallied a produce basket 60 percent overWal-Mart in 2004.

Although Tom Thumb is an outlier, the lack of effective price competitiveness by the conventional grocery segment is not at all surprising. All across the country, after 20 years of competition with theWal-Mart Supercenter concept, conventional grocery stores typically remain from 15 percent to 20 percent more expensive than Wal-Mart Supercenters when it comes to fresh produce pricing. This seems to work for these stores because they have successfully differentiated themselves from Wal-Mart by offering a more upscale experience and by executing better at the store level. In many ways, conventional grocers have ceded the low income market to Wal-Mart and others, closing stores in lower income areas while adding service and flair to their other stores. In this way, they have succeeded, andWal-Mart’s gains in market share over the years have typically come from the independent sector, as these less well capitalized retailers found themselves unable or unwilling to make the very substantial investments necessary to remain competitive.

How They Stack Up Against Wal-Mart Supercenter

Region

Store

% Over
Wal-Mart

Store

% Over
Wal-Mart

Store

% Over
Wal-Mart

Connecticut-5/02

Super Stop & Shop

23%

Shaws

34%

Big Y

36%

Salt Lake City-10/02

Harmon’s

2%

Smith’s

6%

Albertson’s

12%

South Florida-2/03

Super Target

22%

Publix

s31%

Winn-Dixie

52%

Dallas, Texas-10/03

Albertsons

23%

Brookshires

7%

Kroger

19%

Neighborhood Market

—1.2%

Tom Thumb

27%

Portland, OR-3/04

Albertsons

30%

Fred Meyer

22%

Haggen

27%

Safeway

37%

Phoenix, AZ-8/04

Albertsons

22%

Bashas’

25%

Fry’s

15%

Safeway

17%

Palm Springs-10/04

Albertsons

19%

Jensen’s

60%

Ralphs

16%

Vons

20%

Detroit, MI-1/05

A&P Food Basic

—17%

Farmer Jack

24%

Kroger

28%

Meijer

3%

St. Louis, MO-5/05

Dierbergs

22%

Schnucks

14%

Houston, TX-9/05

HEB

15%

Kroger

30%

Fiesta Mart

—0.3%

Atlanta, GA-11/05

Harry’s

18%

Ingles

16%

Kroger

25%

Publix

13%

Target

3%

Denver, CO-5/06

Albertsons

16%

King Sooper

21%

Safeway

25%

Portland, OR-10/06

Albertsons

32%

Fred Meyer

21%

QFC

54%

Safeway

30%

Toronto Canada-7/07

A&P

35%

Brunos

28%

Loblaws

13%

Sobeys

45%

Kansas City, KS-10/07

Dillions

20%

Hen House

15%

Hy Vee

18%

Price Chopper

13%

Los Angeles-4/08

Fresh & Easy

15%

Stater Bros

8%

Ralphs

25%

Vons

14%

Orlando, FL-10/08

Publix

32%

Super Target

22%

Whole Foods

38%

Winn Dixie

28%

Phoenix, AZ 4/09

Wal-Mart Marketside

23%

Wal-Mart Neighborhood

7%

Bahas

30%

Fresh & Easy

32%

Fry’s

27%

Safeway

37%

Raleigh, NC 9/09

Food Lion

24%

Fresh Market

31%

Harris Teeter

35%

Kroger

21%

Super Target

11%

Philadelphia 4/10

Acme

17%

Genuardi’s

22%

Giant

26%

Super Fresh

21%

Wegmans

5%

New Jersey 10/10

FoodBasics

—1%

Pathmark

15%

ShopRite

8%

Dallas 10/11

Albertson’s

25%

Central Market

19%

Kroger

21%

Sprouts

—7%

Super Target

10%

Tom Thumb

51%

Unconventional Competition

Though they may be willing to let low income shoppers shop at Wal-Mart, the conventional chains need to keep on their toes. H.E.B. is not the major player in Dallas that it is in South and Central Texas, but its CentralMarket concept, famous for its upscale ambiance and quality assortment — which one might expect to have a price point more similar to Tom Thumb than a conventional supermarket — actually beat both Albertsons and Kroger, coming in a 19.12 percent over the Wal-Mart Supercenter.

All across the country, after 20 years of competition with the Wal-Mart Supercenter concept, conventional grocery stores typically remain from 15 percent to 20 percentmore expensive thanWal-Mart Supercenters when it comes to produce pricing.

Although the gap is not large, with a market basket of fresh produce that cost $106.35 at Central Market, $108.33 at Kroger and $111.45 at Albertsons, the fact that Central Market is pricing like a conventional supermarket rather than an upscale alternative means it will be a powerful competitor.

For Wal-Mart, though, Central Market is not the problem.One issue is the growth of Target and its supercenter concept. It performs in our study pretty much right where one would expect.With a price point at 10.13 percent over Wal-Mart, its produce pricing comes in a little less than conventional supermarkets and a little more than Wal-Mart.

Wal-Mart Supercenter vs 6 Chains
Price Comparison — Dallas, TX

October 2011 – Prices Available To Card Holders

STORE NAME

WALMART

SPROUTS

SUPER TARGET

WALMART

Produce Item

How
Priced

Regular
Price*

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Broccoli Crowns

Lb

1.84

1.99

8.15%

1.99

8.15%

1.00

-45.65%

Cantloupe – Whole

Each

1.58

1.00

-36.71%

2.29

44.94%

2.50

58.23%

Cherries

Lb

2.98

3.99

33.89%

4.99

67.45%

3.99

33.89%

Corn – Yellow

Each

0.33

0.50

51.52%

0.59

78.79%

0.40

21.21%

Grapes – Green Seedless

Lb

1.98

1.79

-9.60%

2.49

25.76%

1.69

-14.65%

Grapes – Red Seedless

Lb

1.98

1.99

0.51%

2.49

25.76%

1.69

-14.65%

Green Onions

Bunch

1.12

0.89

-20.54%

0.69

-38.39%

0.62

-44.64%

Mangos

Each

0.64

0.99

54.69%

0.99

54.69%

1.00

56.25%

Nectarines

Lb

1.25

0.99

-20.80%

1.99

59.20%

1.49

19.20%

Peaches – California

Lb

1.25

1.79

43.20%

1.99

59.20%

1.00

-20.00%

Peas – Snap

8 oz

2.63

3.69

40.30%

1.68

-36.12%

2.99

13.69%

Peppers – Green Bell

Each

0.78

0.99

26.92%

1.29

65.38%

0.86

10.26%

Radishes

Bunch

1.48

1.00

-32.43%

0.99

-33.11%

0.99

-33.11%

Salad – Garden

12 oz

2.78

2.04

-26.62%

2.52

-9.35%

3.29

18.35%

Salad – Spring

5 oz

2.98

3.49

17.11%

2.99

0.34%

3.29

10.40%

Salad – Organic

5 oz

2.98

3.99

33.89%

2.20

-26.17%

2.99

0.34%

Strawerries – 1# Pkg

Pkg

1.88

1.99

5.85%

2.49

32.45%

2.50

32.98%

MARKET BASKET

89.28

111.45

24.83%

106.35

19.12%

104.20

16.71%

Red is adjusted price

STORE NAME

WALMART

SPROUTS

SUPER TARGET

WALMART

Produce Item

How
Priced

Regular
Price*

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Regular
Price*

% Over
Wal-Mart

Broccoli Crowns

Lb

1.84

1.49

-19.02%

1.69

-8.15%

1.49

-19.02%

Cantloupe – Whole

Each

1.58

1.50

-5.06%

2.39

51.27%

1.50

-5.06%

Cherries

Lb

2.98

2.49

-16.44%

3.49

17.11%

2.99

0.34%

Corn – Yellow

Each

0.33

0.50

51.52%

0.34

3.03%

0.50

51.52%

Grapes – Green Seedless

Lb

1.98

1.50

-24.24%

1.89

-4.55%

2.49

25.76%

Grapes – Red Seedless

Lb

1.98

1.50

-24.24%

2.29

15.66%

2.49

25.76%

Green Onions

Bunch

1.12

0.49

-56.25%

1.19

6.25%

0.50

-55.36%

Mangos

Each

0.64

0.79

23.44%

0.44

-31.25%

1.50

134.38%

Nectarines

Lb

1.25

0.69

-44.80%

1.27

1.60%

2.99

139.20%

Peaches – California

Lb

1.25

1.29

3.20%

1.04

-16.80%

0.88

-29.60%

Peas – Snap

8 oz

2.63

2.50

-4.94%

2.99

13.69%

2.49

-5.32%

Peppers – Green Bell

Each

0.78

0.49

-37.18%

0.79

1.28%

0.50

-35.90%

Radishes

Bunch

1.48

0.49

-66.89%

0.99

-33.11%

0.50

-66.22%

Salad – Garden

12 oz

2.78

2.99

7.55%

2.99

7.55%

2.04

-26.62%

Salad – Spring

5 oz

2.98

2.99

0.34%

2.99

0.34%

2.49

-16.44%

Salad – Organic

5 oz

2.98

3.49

17.11%

3.99

33.89%

3.99

33.89%

Strawerries – 1# Pkg

Pkg

1.88

2.50

32.98%

2.09

11.17%

3.00

59.57%

MARKET BASKET

89.28

83.32

-6.68%

98.32

10.13%

120.58

35.06%

Red is adjusted price

Added Loyalty

Another question is whether other retailers can use loyalty cards to offer their core customers deep bargains.Although we have seen a substantial difference in price competitiveness when factoring loyalty card discounts in recent cities studied, such as Philadelphia, Raleigh and Phoenix, that doesn’t seem to be the case in Dallas.

Kroger’s loyalty card shifted its price position from 21.34 percent over Wal-Mart to 16.71 percent over Wal-Mart, and volume items, they account for a much higher percentage of produce department sales.

Aldi came in at a full 26.14 percent underWal-Mart’s produce pricing. In other words, the difference in price between Aldi on the low side and Wal-Mart on the high side is actually larger than the gap between Wal-Mart on the low side and conventional supermarkets on the high side.

Thus Wal-Mart’s reputation for offering the lowest prices in Dallas begins to tatter and, in the end,Wal-Mart finds itself in the middle, being squeezed by deep discounters such as Aldi on price and conventional supermarkets on service.

Is there a way out from this dilemma for Wal-Mart? Stay tuned for the next edition of the Produce Business Wal-Mart Pricing Report to find out.